Economy & Market
Journey from commodity to brand
Published
7 years agoon
By
admin
For long, cement is regarded as commodity but off late, it is treated as a "Brand". This has not happened overnight but it is an interesting journey. We take our readers through this historical migration that is still happening.
Indian cement industry is characterised by the co-existence of both large manufacturers (national players) as well as small players (regional players). Presently there are more than 65 cement manufacturers in the country. However, the big companies- UltraTech, ACC and Ambuja Cement – together have 44.2 per cent of the industry capacity. It should be noted that in FY2008, their share was just 34.3 per cent. However, these big companies may have to cede some ground by 2021 when their share will see a slight fall to 42.4 per cent due to capacity expansion by others. In last 10 years, cement manufacturing capacity has more than doubled, which is mainly due to strong demand the industry had experienced till FY 2012.
Commodity
Cement is a commodity as vital to fast-growing economies as oil or steel, fertiliser. Some say, uniqueness of the Indian market has made cement producers act a lot like makers of consumer products. Market pressure and consumer structure have pushed major cement players in the country to start investing into more than just making their product strong and efficient. They are now adding personality to the construction material, by building brands around it. And they are doing it by the rules of consumer marketing. The outcome can only be interesting. All over the world major quantity of cement is distributed in the bulk mode and very little goes through bags. However many thinkers have expressed that in India the quantity distributed through bulk is going to increase but what goes through bags will be a significant volume which the producers can’t ignore.
Why a sack of cement is worth more for the customer? Why he thinks the product offered to him is better than others? In short the product when goes as a brand to him must have enhanced value, not just through advertisements but in the real sense. Normally in retail cement market, the buying decision is taken by contractors, middleman or mason. Let us now take a few interesting cases.
Ambuja
Ambuja Cement is a multi-region cement manufacturing company. The company has significant presence in northern, western and eastern regions. The company does not have cement capacities in the southern and central regions. About 85 per cent of its sales come from retail segment. The company is expanding its cement capacity by 3.1 MTPA in Marwar which is scheduled for commissioning in FY 20-21.
It is Ambuja, in the year 1983 set up a plant for manufacturing 0.7 MT cement on the western coast and started selling cement. It realised the potential of Mumbai market for retail business and came with an idea of "giant compressive strength". Sooner many other cement companies and even today all new launches are centred on compressive strength of cement. However due credit must be given to Ambuja for capitalising on the strength attribute of a cement. Ambuja soon focused on various means like good advertisement, handsome returns to retailers and fulfilling all other expectations of a cement seller. Then came the gradation of cement, like 43,53 etc. and further was the buzzword ISO 9002. Every where Ambuja scored much better than the existing players. The others had to simply follow what Ambuja was doing.
Talking about the advertisements, we would like to mention a few exceptions like ACC, Shree and JSW, which have never used strength of cement as an attribute in their advertisements. ACC follows an approach of a single mother brand, being one of the oldest cement companies. On the other hand, even today a majority of cement producers create their advertisements only around strength. There are many other attributes of cement, which a creative advertiser is yet to find out. Shree cement is yet another exception.
While talking about the strength of cement, what users expect is a consistent level of strength for batches after batches supplied to him. Giving one time high strength is not a big deal. We can quote here the case of L&T Cement when being sold as brand L&T that had a very high reputation of consistent strength, which even many users acknowledge today. A good number of staff who worked then at L&T and are now part of UltraTech. It was also a very credible brand among cement traders for its fair dealings. While launching UltraTech as a brand, Kumar Mangalam Birla, Chairman AVB Group expressed the optimism that "UltraTech Cement will resonate with buyers in just the way L&T Cement did. Nothing has changed except the name. What was L&T Cement becomes UltraTech Cement". This clearly indicates that he acknowledged the brand value of L&T. There is no wonder, among all the institutional buyers L&T was the most favoured brand for a very long time. The name UltraTech itself has resemblance with L&T and has a tagline "The Engineers" Choice
. Today UltraTech is the largest selling brand in the country that is closely watched by every cement user.
Lafarge story
About 65 per cent of cement is used by individual house builder and around 19 to 20 per cent is infrastructural demand. Lafarge India has launched its premium cement brand, Lafarge Concreto. Lafarge was then the cement market leader in eastern India with a market share of 20 per cent followed by Grasim and Ultratech with 17 per cent. Concreto is reportedly superior quality cement that helped in building better structures that last longer, a consulting civil engineer said.
Cement accounts for about 15 per cent of the total construction cost of a typical house. Though Concreto was priced higher than the normal Lafarge cement, its superior quality and increased durability would more than compensate the increase in cement cost, he said. Concreto was 5 ruppes costlier than other variants.Today the brand has gone to Nuvoco.
Packaging of cement
When cement started selling as a brand, the first innovation that happened was paper packing. To give a premium status to the product, many companies started supplying cement in paper bags especially 53 Grade in good olden days. The higher price could neutralise for the increased cost of paper. However paper packing had its own problems like more handling charges, higher bursting rate while packing and controlled conditions for storing stock of paper bags. The production rate of packing was required to be compromised therefore it was not sustainable.
The other innovation came with 25 kg bag instead of normal 50 kg packing. However this also did not last because production rate was simply halved given the same packing machine. The recent innovation has been polypropylene laminated bags. These are costlier and better looking bags with multi-colour printing option. This innovation is still under observation and yet to accepted fully. So far the practise has been to source the packing material from outside the plant however few cement companies have invested in producing their own packing bags.
We must mention here what has been happened in the segment of white cement, the product always enjoys an elite status over grey cement. The use of cement being very restricted it was many times sold loose for limited application by a retailer. The smart marketing officers saw a potential here and both Birla White and JK Cement introduced 1 kg and 5 kg pack for white cement which instantly became a success. In terms of profit for the companies, these product baskets have been giving highest earnings. The extension to white cement has been "Wall Care Putties." This value added product is giving handsome returns on investments.
Networking
Networking with engineering fraternity and user community is a very important aspect of brand building exercise. Cement being an intermediate product always converted into some other form. E.g it is converted into concrete or plaster mortar. The role played by consulting engineers is extremely important here. On the strength parameters, L&T was extremely consistent, which was proved to engineering community by providing standard deviation values drawn over a period of time. The engineers are required to use these values in designing concrete mixes. In case of any decorative applications role of an architect is vital. Therefore white cement producers are well connected with architects. Flooring, plastering are other applications of cement where architects have a say.
The other important agency that play a crucial role is mason who uses the cement with his own hands. Generally a retail buyer of cement will not displease the mason who is working for him. Cement companies organise mason meets regularly but after some time these turn out to be monotonous and gift distribution event. Some kind of innovation if can be brought to mason meets then it will be a very useful forum for spreading a message. Retailer of cement is another channel partner who has a role to play. Schemes worked out for retailers are parallel to what are run by FMCG companies. These have to be consistent and transparent in execution. Retailer always compares the schemes offered by different companies and chooses the one best suited for him.
Commodity vs. product (Brand)
- A commodity is a raw material used in the production process to manufacture
- finished goods, while a product is a finished goods sold to consumers
- No value is added to a commodity, which can be grown, extracted, or mined
- Commodities are traded on exchanges through futures contracts, stocks, and ETFs, and can also be bought and sold in their physical states
- Products are sold on the market for consumption by the average consumer and can also be found in investment portfolios.
Guide to brand building:
- Make your brand as unique as possible
- Quickly globalise brand and its products
- Brand is an investment and not cost
- Reward customers involvement and make them active promoters of your brand
- Encourage communities that share your values
- Donations to good causes to prove that brand is sensitive to the world around
- Sponsorship to a good cause or an event
- Service associated with a brand
- Don’t overload customers with too much of technical data and literature
- Speak the language, the customer understands
- Interaction with customers at regular intervals
– VIKAS DAMLE
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Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication
Published
4 days agoon
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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement
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Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.
Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.
He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.
Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.
At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.
The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.
Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.
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JSW Cement commissions additional 1 MTPA grinding unit at Nagaur
Published
5 days agoon
October 8, 2026By
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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai
JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.
With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.
JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.
During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.
Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”
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UltraTech becomes first Indian cement firm to cross 2 GW green energy
Published
6 days agoon
October 7, 2026By
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UltraTech Cement has crossed 2 GW of captive green energy capacity, with renewables and waste heat recovery meeting 48 per cent of its power needs.
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UltraTech Cement Limited has surpassed 2 GW of installed green energy capacity for captive use, becoming the first cement company in India to achieve the milestone. The Aditya Birla Group company commissioned 116.55 MW of wind capacity at its Inter-State Transmission System-connected wind-solar hybrid project in Barmer, Rajasthan, along with 10 MW of Waste Heat Recovery System capacity at Sarlanagar Cement Works in Karnataka.
With these additions, UltraTech’s cumulative installed green energy capacity has reached 2,024 MW. This includes 1,580 MW of renewable energy capacity and 444 MW of waste heat recovery capacity, together meeting around 48 per cent of the company’s current power requirements.
The company said the milestone reflects the progress of its long-term energy transition strategy. In FY27 so far, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements, while five units have crossed 95 per cent.
K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “Crossing the 2 GW green energy milestone is the result of a strategy we have pursued consistently over the past decade. Cement is an energy-intensive, hard-to-abate sector, and showing that reliability and growth can go hand in hand with a rapid shift to green energy sets a benchmark for the industry. With nearly half of our power needs now met through green energy, we are significantly less exposed to fossil fuel supply constraints and power price volatility. As we scale up renewables, waste heat recovery and battery storage across our operations, we are building an energy foundation for stable, long-term growth.”
UltraTech commissioned 430 MW of green energy capacity in FY26 and continues to expand its renewable energy and waste heat recovery portfolio.
The company is also progressively integrating Battery Energy Storage Systems across its operations to improve renewable energy utilisation and supply reliability.
In 2025, UltraTech operationalised what it described as India’s first on-site hybrid round-the-clock renewable energy project at Sewagram Cement Works in Gujarat. The project combines solar, wind and battery storage.
As part of its decarbonisation strategy, UltraTech said it has not invested in new captive thermal power capacity for either greenfield projects or brownfield expansions at its integrated units for more than a decade.
The company said its expanding green energy portfolio is helping reduce dependence on conventional grid electricity and fossil fuel-based power, while lowering exposure to fluctuations in coal and electricity prices.
UltraTech aims to increase green energy’s share in its total power mix to 85 per cent by 2030. As a member of RE100, it has also committed to meeting 100 per cent of its electricity requirement through renewable sources by 2050.
UltraTech Cement, the cement flagship of the Aditya Birla Group, has a total grey cement capacity of 210.1 MTPA and white cement and putty capacity of 3.5 MTPA. The company is also a signatory to the GCCA Climate Ambition 2050 and has committed to the GCCA Net Zero Concrete roadmap.
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